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Southern Company builds AI data center pipeline with $81 billion plan
The company says its large-load contracted customer base grew to more than 11 GW, while its 2026 to 2030 outlook includes about 10% electric sales growth through 2030.
Southern Company has positioned its utility business as an AI infrastructure platform, pointing to a growing portfolio of large-load customer contracts and a substantial multi-year investment plan. The stock has risen nearly 12% year to date, outpacing the S&P 500's near 7% gain, as the company links its growth to data center demand.
According to Yahoo Finance, Georgia Power signed a 25-year power agreement to supply OpenAI's planned $30 billion data center in Effingham County, Georgia, with power needs of about 3.2 GW starting in 2028. Southern says it now has more than 11 GW of contracted large-load customers, up about 2 GW from the prior quarter, with additional projects in the finalizing and late-stage development stages.
Southern also provided a longer runway for the demand it expects from data centers. The company guided for roughly 10% electric sales growth from 2026 through 2030, and 7% to 9% adjusted EPS growth through 2028 and beyond, while reporting Q1 data center sales growth of 42% year over year and wholesale electric revenue up almost 30%.
The company is funding the expansion with an $81 billion capital plan, up 28% or about $18 billion since January 2025, including 10 GW of new state-regulated generation under construction and more than 500 miles of new transmission lines. Yahoo Finance also notes that Southern describes contract structures that include minimum bills and termination payments tied to remaining contract costs, with collateral requirements based on customer creditworthiness.
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